SENATE, No. 2960

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED SEPTEMBER 24, 2020

 


 

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     Prohibits third-party food takeout and delivery applications from charging restaurants fee for telephone orders.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act prohibiting certain third-party food takeout and delivery application service fees charged to restaurants and supplementing P.L.1960, c.39 (C.56:8-1 et seq.). 

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any third-party food takeout and delivery service application or Internet website to charge any restaurant a fee for a telephone order. 

     The provisions of this section shall not be construed to limit the ability of any restaurant to affirmatively elect to pay a fee for a telephone order to access additional advertising or other products and services offered by any third-party food takeout and delivery service application or Internet website if the terms of the agreement for extra services are set forth in simple, clear, understandable, and easily readable terms.

     As used in this section:

     “Restaurant” means any establishment primarily engaged in the preparation and sale of food or beverages for consumption on or off the premises. 

     “Telephone order” means an order placed by a customer to a restaurant through a telephone call forwarded by a call system provided by a third-party food takeout and delivery service application or internet website.

     “Third-party food takeout and delivery service application or Internet website” means any online food ordering and delivery service that allows a consumer to place an order for takeout or delivery from a restaurant. 

 

     2.    This act shall take effect immediately. 

 

 

STATEMENT

 

     This bill makes it an unlawful practice for third-party food takeout and delivery applications or websites to charge a fee for telephone orders to a restaurant. 

     Under the bill, a restaurant may affirmatively elect to pay a fee for telephone orders to access additional advertising or other products and services offered by the third-party food takeout and delivery application or website if the terms of the agreement for extra services are set forth in simple, clear, understandable, and easily readable terms.

     The bill defines “telephone order” to mean an order placed by a customer to a restaurant through a telephone call forwarded by a call system provided by the third-party application or website.  In addition, the bill defines “third-party food takeout and delivery application or Internet website” to mean any online food order or delivery service that allows a consumer to place an order for takeout or delivery from a restaurant. 

     An unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), is punishable by a monetary penalty of not more than $10,000 for first offense and not more than $20,000 for any subsequent offense.  In addition, a violation may result in a cease and desist order issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured.